Do MDA's Enhance Or Dilute The Investment Process?
- Topics:
- Commercial Lending
- Tags:
- Benefits,
- Software Development,
- Retirement Plans,
- PCT Publishing,
- Ooa/Ood/Oop,
- Mutual Funds,
- Mutual Fund,
- Model-driven Architecture,
- Model Driven Architecture,
- Investment,
- ...
- Source:
- PCT Publishing
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Overview: The fear is that the high level, fee-based advice to which we have all worked so hard to foster, will be subverted by the packaging of the mutual fund industry or by multi-manager investments sold as a product, cheapening the role of the consultant. It is feared is that in the lucrative retail market, where fee-based advice is economically viable for accounts between $100,000 and $1 million, that the packaging of the investment process will get to a point where the consultant is simply paid very well to provide a substantially automated clerical function which adds little value. With advances in technology and process, it is distinctly possible that the level of advice, which is possible to deliver, exceeds the skill, interest, and desire of the advisor to provide. The dominant mutual fund and insurance companies are enthusiastically entering the separate managed account business, I only hope that with all their marketing power they do not lose our consultant process orientation and revert back to their more accustomed product orientation. Many forces outside this industry would liken the business to other money-managed products so that they can more easily define and measure what is done and thereby diminish the consulting and varied services that they bring, along with the money managers’ professional skills. People are in the business of defining client needs and matching on a one-on-one basis the manager or a collection of managers that will ensure the best opportunity for our client to reach their goal.
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Format: PDF | Size: 1,331KB | Date: Apr 2002 | Pages: 3
